New models for distribution

Some compaines such as Gonzo, Kadokawa, and TV Tokyo are trying out different online methods of anime distribution such as online streaming with ads or membership fees. One of the most promising new methods of anime distribution for the anime companies is online streaming, just hours after or even simultaneously as on Japanese television.

Online Simulcast

In what has been dubbed "Spring 2009 - The Season of the Simulcast", many Japanese companies have finally listened to the fansubbers' complaints and have adopted a new model for distributing translated anime that satisfies many of the demands of both fansubbers as well as the companies themselves. On websites such as Crunchyroll, Funimation, Hulu, Joost, and YouTube, animation companies are releasing subbed versions of their anime series, hours or simultanesously as in Japan. Since these are the official versions of the anime from anime production companies, the websites had to pay for them. These are either monetized by ads or by membership fees.

Why it works for fans

These recent offerings of online streaming have done much to satisfy the complaints among fan-subbers. The shows are now being official distributed by these online streaming sites authorized by the anime or broadcasting companies. They are being shown at a timely manner, almost at the same speed as on Japanese television. There are fast and free options to view these shows as they air, before any fan is obliged to buy any physical media. There is minimal editting and the original Japanese dub is preservered in the broadcasts. The companies have also listened to the fans for directions to take in the translation of the shows.

Why it works for anime companies

Online streaming is an ideal solution for anime companies as well, since the costs are much lower that reserving a TV time slot on Japanese television. They can generate revenue from website ads and membership fees, which are implemented by some websites. Also, they get more control over the show if they release it themselves online internationally instead of licensing it out to localization companies.

The Websites and their Shows

Crunchyroll.com has been nabbing the headlines all spring ever since it announced it was streaming the popular series Naruto at the same time it was airing in Japan. Since then, it has also started streaming 13 other shows this season, all within hours of airing in Japan.

Crunchyroll.com used to be infamous among the fansub community for offering streaming fansubs under a paid membership account, while many fansub groups intended to release their shows for free. However, at the beginning of winter 2009, Crunchyroll.com announced that they were going to be fully legal, starting with Naruto, removing the fansubs from their website and only offering official subs directly from the animation companies. This was soon followed by more offerings from TV Tokyo and Toei Animation. Gonzo had already been streaming anime on Crunchyroll since winter 2008.

Crunchyroll has an anime membership paid account that has access to the simulcasts as well as 720p resolution versions of the episodes. However, you can watch regular resolution episodes one week after they air in Japan for free. This model works great for both the enthusiasts who want to watch the latest shows and support the anime company, as well as for those who'd rather watch the shows for free just to check them out before commiting.

Note: Funimation has stopped streaming for the time being due to some security issues since May 30, 2009.

Funimation is an anime localization company that buys licenses and then produces English versions of the anime for an American audience. This season they have also started to stream subtitled anime shows just days after they broadcast in Japan. Their most popular series is Full Metal Alchemist, which began on April 9, 2009. Viewing content on Funimation is free and any advertisement revenue goes directly to Funimation to help localize more anime.

Hulu also provides official subtitled anime, which is free to view and financially support by ads between videos. They also offer a few shows that are currently airing, with new episodes coming out just days after airing in Japan. There is no user uploaded content on Hulu, only anime from official licensers, so ad revenue generated on those pages should go towards the rightful copyright owners.

Joost is another similar online television streaming program to Hulu. All the videos on Joost are from official licensers and they also have a few close to simulcast series.

Now, most of what's on YouTube is user submitted, so much of the anime on it are fansubs. However, Japanese animation companies are beginning to open YouTube channels and offer their anime series to be streamed online. An example is Bandai Entertainment, who oversee the animation studio Sunrise. They have their old seasons of their famous franchise Gundam available for free viewing and Code Geass, with both Japanese and English dubs. And, every week they add a new episode of their currently airing series Kurokami, within days of airing in Japan. By partnering with YouTube, they can earn revenue from the ads on their pages, making it even easier to host anime online compared to DVD sales.